Investment firm Steel Partners said on Wednesday it had offered $18 per share to acquire a 51% stake in InMode, sending the Israel-based medical technology firm's US-listed shares up nearly 8% in after-hours trading.
The offer represents a 29% premium over InMode's closing share price last Friday, before speculation around a potential transaction was reported in the media, Steel said.
Steel, which owns about 1.3% of InMode's outstanding stock, said it intends to fund the transaction through a combination of cash on hand and borrowings under its existing credit facility.
InMode did not respond to Reuters' request for comment.
The investment firm, in a letter to InMode's shareholders, said it had made multiple attempts to engage privately with InMode's leadership about the proposal but had been rebuffed, prompting it to take the offer directly to the investors.
The company added that it believes InMode has "underperformed its true potential," with "abysmal" total shareholder return over numerous periods.
Steel Partners may take proposal directly to shareholders
Steel plans to proceed without a financing contingency and is prepared to sign a non‑disclosure agreement to facilitate discussions, adding that if InMode's board and management do not engage, it may take its proposal directly to shareholders.
The company said it sees room to boost InMode's sales through improved commercial execution and selective acquisitions, while maintaining cost discipline.
InMode, which went public in 2019, develops devices that use radiofrequency energy for minimally invasive esthetic procedures.
Bloomberg News first reported on the news.